Qualcomm boosts auto biz with Autotalks acquisition
Qualcomm has announced its acquisition of Autotalks, an Israeli fabless chipmaker specializing in semiconductor and system-on-a-chip technology for automotive safety. The deal, reportedly worth between $350 million and $400 million, is part of Qualcomm's longer-term strategy to tap into the lucrative automotive sector as a customer base for its chips and communications technology.
Autotalks' technology, which includes sensors that assist drivers in detecting road hazards and vehicle-to-vehicle communication capabilities, will be integrated into Qualcomm's Snapdragon Digital Chassis portfolio. This move underscores Qualcomm's commitment to advancing V2X (vehicle-to-everything) communication technology and improving responsiveness in vehicles of all types, including cars, bikes, and other forms of mobility.
Although specific financial details of the acquisition have not been disclosed, sources close to the deal have revealed that the Autotalks acquisition by Qualcomm is estimated to be worth between $350 and $400 million. Qualcomm declined to comment on the matter, but we will continue to provide updates as more information becomes available.
Autotalks, a chipmaker that develops semiconductor and system-on-a-chip technology for automotive safety, was established in 2009 and has raised $110 million in funding to date. The company has received support from a number of notable strategic investors, including Samsung, Hyundai, and Toyota, as well as financial backers like Gemini Israel and Magma Venture Partners.
Qualcomm has made notable strides in the automotive industry, boasting an impressive client roster that includes Volkswagen, General Motors, Mercedes-Benz, Cadillac, Honda, and Stellantis. Last year, the company announced a $30 billion "design-win pipeline" in the automotive sector, although it is more of a long-term concept than a concrete idea. In terms of revenue, Qualcomm's QCT division, which covers mobile and wireless chips and related technology, generated $975 million in automotive revenue in FY21 and $1.3 billion in FY22.
Qualcomm has been focusing on automative market
The acquisition of Autotalks aligns well with Qualcomm's focus on advancing in the automotive market. Safety has emerged as a critical issue in advanced automotive technology, and it presents a lucrative opportunity for autonomous and driver-assisted systems. Car manufacturers are highly likely to invest in safety features as a primary solution and offering for customers when designing new car models, regardless of the timeline for fully autonomous systems. Therefore, enhancing Qualcomm's capabilities and product range in this area is a sensible move.
“We have been investing in V2X research, development and deployment since 2017 and believe that as the automotive market matures, a standalone V2X safety architecture will be needed for enhanced road user safety, as well as smart transportation systems. We share Autotalks’ decades-long experience and commitment to build V2X technologies and products with a focus on solving real-world road user safety challenges. We look forward to working together to deliver global V2X solutions that will help accelerate time-to-market and enable mass market adoption of this very important safety technology,” stated Nakul Duggal, senior VP & GM, automotive, Qualcomm Technologies, in a statement.
“It has been our mission to revolutionize safety for the transportation and automotive industry through our V2X solutions. We are confident that by combining our knowledge and expertise, we will not only deliver strong V2X products that will enhance transportation efficiency and safety for road users but will accelerate widespread adoption of V2X. We look forward to serving the auto industry together with Qualcomm and to bring the best technologies to market,” added the CEO of Autotalks, Hagai Zyss.Advertisement